Commercial Property Price Index decreased by 0.2% in March. The index has fallen by -15% since property prices peaked a year ago. The chart tracks CRE in America. “Transaction volumes remain low, but our estimates put the bid price about 15% lower than it was a year ago,”
“The change in pricing varies by property type. Offices space has seen the largest price declines, where even high-quality properties are down 25% over the past year.”The Commercial Property Price Index in Europe decreased by 6.7% during the first quarter of 2023. The index, which measures a broad swathe of Pan-European commercial properties, now sits 21% below its May ’22 peak.
The residential sector bore the brunt of the pain this quarter with a 10.4% price decline, although metros with above-average starting yields and limited rental regulation went relatively unscathed. Office investors returned to their post-Covid form as bids fell -9.5%, amidst an uncertain economic and financing backdrop. Industrial and retail asset prices fared a bit better, falling only 4.8% and 2.0%, respectively. Resilient fundamentals buoyed the former whilst high cap rates dressed up the latter.
COMMERCIAL MORTGAGE-BACKED SECURITIES FALLING OFF A CLIFF RAPIDLY, BANKING FAILURES IN CREDIT MARKETS AND DERIVATIVES MARKETS COULD INCREASE SHARPLY